OMB Analyst…


OMB Analysts Warned Against Saving Solyndra

In January 2011, White House officials supported the restructuring of Solyndra, the scandal-plagued solar company of the president’s clean energy initiative, despite warnings from multiple analysts in the White House’s Office of Management and Budget (OMB) that saving the company would be more costly than letting it die.
According to an investigation by the House Energy and Commerce Committee, senior officials in the OMB did not discourage the Department of Energy (DOE) from proceeding to restructure Solyndra’s loan so private investors would be paid back ahead of taxpayers, should the company fail. The Washington Post reports:
The restructuring went forward, but within months Solyndra failed anyway, leaving federal taxpayers on the hook for much of the half-billion-dollar federal loan. Now, a year after the company’s collapse, debate continues over whether the refinancing plan was legal or a wise investment. Last week, Solyndra’s final liquidation plan estimated that the government will recover just $24 million of the $527 million that taxpayers lent to the company.
Details about the debate emerge in internal government documents. They show that Energy Department officials argued that Solyndra might be able to pull out of its downward spiral if given an emergency infusion of cash. …

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